The Future of Blockchain – Dr Mureed Hussain

Blockchain is a distributed, immutable network of peer-to-peer transactions recorded in a virtual ledger. It relies on developed cryptographic systems to allow users to store, exchange and view data.

Interactions within the blockchain are open to all participants since there’s no central governing body. All data is synchronized and shared across multiple databases found in different geographical areas. Generally, the technology allows for trustless cooperation between network users, while also keeping an incontrovertible audit trail of all exchanges.

Future use cases

Blockchain technology was first made popular by Bitcoin, a value exchange system that was launched in 2010 by an anonymous internet user called Satoshi Nakamoto. Ever since it pioneered, Bitcoin usage has grown by more than 100pct every year to currently stand at well over 8 million accounts.

Similarly, it’s estimated that about 0.5pct of the globe’s population today is using blockchain. Not to mention that experts believe the international market for this technology would be worth $20 billion by the year 2024.

a) Smart contracting

Smart contracts are legally binding programmable virtual contracts entered on a blockchain. In most cases, they are implemented by developers as variables and statements for release of funds using a digital currency network such as bitcoin, rather than putting all trust on a single central regulatory body.

Ethereum is taking smart contracting to a whole new level by trying out a new system, whereby blockchain transactions of any level of complexity can be encrypted then solely authorized by the software network running the code, which in this case is Ethereum.

It’s the first distributed ledger system to incorporate Turing Complete artificial intelligence, which allows Ethereum smart contracts to perform any computational work. The contract can be written in a Solidity programming code, or one of its online compliers such as Remix.

Users must first install the Ganache program on their computer which shall be used to develop a private blockchain. You will also have to download a copy of MyEtherWallet.

For creation of Ethereum contracts, Remix has 1 variable and 3 functions. The ‘count’ variable is a private integer that can only be accessed by authorized participants. On the other hand, the first function ‘incrementCounter()’ mutates the count value by incrementing its worth. The second function ‘decrementCounter()’ decrements count value, while third function ‘getCount()’ provides count access and returns value to whoever called the function.

b) Payment systems

Blockchain is increasingly being used in the financial industry to streamline payment systems. In fact, statistics show that Bitcoin’s market capitalization has already exceeded that of fintech guru PayPal. This massive growth can be attributed to mass consumer adoption of blockchain technology, which promises increased convenience, security and transaction speed.

The system’s key adv…
[15:00, 1/9/2018] Dr. Mureed: The future of Blockchain written by: Miller.Hum What is it?

Blockchain is a distributed, immutable network of peer-to-peer transactions recorded in a virtual ledger. It relies on developed cryptographic systems to allow users to store, exchange and view data.

Interactions within the blockchain are open to all participants since there’s no central governing body. All data is synchronized and shared across multiple databases found in different geographical areas. Generally, the technology allows for trustless cooperation between network users, while also keeping an incontrovertible audit trail of all exchanges.

Future use cases

Blockchain technology was first made popular by Bitcoin, a value exchange system that was launched in 2010 by an anonymous internet user called Satoshi Nakamoto. Ever since it pioneered, Bitcoin usage has grown by more than 100pct every year to currently stand at well over 8 million accounts.

Similarly, it’s estimated that about 0.5pct of the globe’s population today is using blockchain. Not to mention that experts believe the international market for this technology would be worth $20 billion by the year 2024.

a) Smart contracting

Smart contracts are legally binding programmable virtual contracts entered on a blockchain. In most cases, they are implemented by developers as variables and statements for release of funds using a digital currency network such as bitcoin, rather than putting all trust on a single central regulatory body.

Ethereum is taking smart contracting to a whole new level by trying out a new system, whereby blockchain transactions of any level of complexity can be encrypted then solely authorized by the software network running the code, which in this case is Ethereum.

It’s the first distributed ledger system to incorporate Turing Complete artificial intelligence, which allows Ethereum smart contracts to perform any computational work. The contract can be written in a Solidity programming code, or one of its online compliers such as Remix.

Users must first install the Ganache program on their computer which shall be used to develop a private blockchain. You will also have to download a copy of MyEtherWallet.

For creation of Ethereum contracts, Remix has 1 variable and 3 functions. The ‘count’ variable is a private integer that can only be accessed by authorized participants. On the other hand, the first function ‘incrementCounter()’ mutates the count value by incrementing its worth. The second function ‘decrementCounter()’ decrements count value, while third function ‘getCount()’ provides count access and returns value to whoever called the function.

b) Payment systems

Blockchain is increasingly being used in the financial industry to streamline payment systems. In fact, statistics show that Bitcoin’s market capitalization has already exceeded that of fintech guru PayPal. This massive growth can be attributed to mass consumer adoption of blockchain technology, which promises increased convenience, security and transaction speed.

The system’s key advantage is a decentralized protocol, whereby all transactions and balances can be seen by account holders throughout the payment framework. This makes it impossible for the blockchain to be manipulated or tinkered with by any unsanctioned personnel.

Mastercard is now offering users the ability to transact digital currency over blockchain, rather than swiping their credit card. The company announced that it is targeting cross-border payments between corporate organizations as the sole reason behind its blockchain, which can only be accessed through invitation.

The technology will help truncate costs of trans-continental payments by removing middlemen and foreign banks from the transaction equation, Mastercard’s blockchain promises to connect a procurer’s account directly to the supplier’s.

Various corporations have already subscribed to the new digital payment service by Mastercard. The blockchain will help them perform functions such as tracking the movement of goods like pharmaceuticals, handbags and diamonds, thus reducing fraud by offering ‘proof of provenance.’

c) Insurance

Blockchain has the potential of changing the Property and Casualty (P & C) Insurance industry, by supporting a wide range of processes and being the underlying factor in ‘stacks’ technology.

Business and IT insurers will also benefit greatly from the technology.For claims prevention, new data streams created by blockchain shall improve the risk-selection process by amalgamating location, analytics and external risk. The distributed ledger will allow insurers and other industry players to effortlessly and instantaneously access and modify relevant data such as claim forms, 3rd party review statements, police reports and evidence.

One of Europe’s biggest insurers Swiss Re is already trying out blockchain technology. The company is seeking to explore the opportunities of distributed ledger technology, by using anonymized transaction details and quantitative data to attain proof-of-concept for cross-population retrocessions through blockchain systems. The technology will help streamline claims submission, minimize loss adjuster costs and improve customer satisfaction.

Blockchain can also be used in the insurance of Internet of Things (IoT). Data connected to IoT will be highly valuable to insurers as they seek to create more precise actuarial models, or new market products like usage-based insurance (UBI) models. Moreover, blockchain can manage huge volumes of data stored on IoT by allowing devices to communicate and administer each other on a peer-to-peer scale.

d) Healthcare

In the healthcare sector, blockchain technology can transform services by putting the patient at the core of the ecosystem, it will help improve security and interoperability of recorded health data.

Additionally, the system could potentially provide a new platform for Health Information Exchanges (HIE), by ensuring digital medical records are well-organized, disintermediated and secure.

Blockchain also allows for better control and management of healthcare services. For instance, a healthcare firm can restrict its network nodes to entities with HIPAA covers only, as well as encrypting certain data and opening others to offer multifaceted layers of protection.

Deloitte Consulting LLP is one of the international healthcare firms currently experimenting on blockchain. They are researching for ways to apply the technology to make HIE more efficient and interoperable.

Deloitte hopes capitalization of the technology will help link fragmented systems within the sector, so as to better generate insights and appraise the value of care. Additionally, at the patient-care level clinical data integration will allow service providers to effortlessly use the patient’s stored data to provide personalized medical care.

e) Smart Cities

Smart Cities is a revolutionary concept whereby Information and Communication Technologies (ICT) is used to improve municipal operations such as security, environmental management, citizen participation and economic policies.

Since blockchain operates as a neutral, non-hierarchical, open and secure database, it can be used to create transparency in dealings within the city so as to avoid corruption among the residents and authorities.

Furthermore, the technology can reinforce the value of cross-cutting synchronization of services offered by city authorities such as contracts and permits. On the blockchain network, services are naturally interconnected and correspond to each other, thus making it easier for interested parties to access them without having to visit different municipal offices for assistance.

DigitalTown, a leading service provider for smart-city portal solutions, has launched a blockchain-based shared ledger for managing mutual ownership of each metropolis in its international system of city portals. The company believes this move shall herald a new age of public-private cooperation in the creation of budding local economies.

Each city portal found on DigitalTown is programmed with SmartSearch, a unique search engine providing locally relevant data tailed to suit the user’s preferences. Moreover, registered vendors on the DigitalTown smart city platform have access to a virtual storefront, which can be used to sell locally and internationally while paying only the transaction fees. The firm manages a global network of well over 20,000 city portals, thus making it easy for inhabitants and city visitors to explore, share and shop within the local area and beyond.

In conclusion, the future potential of blockchain is immense as it can be applied in various sectors of the economy such as banking, data security, business, insurance and healthcare among many others. The technology is immutable and thus provides enhanced security and efficiency to users.